After an exceptional decade between 2004 and 2014, during which Copa recorded profit growth of around 30% a year, the decade that followed was more complicated, and punctuated by uneven performances.

The company, it's true, had to contend with a succession of unpleasant circumstances: an extremely violent recession on the South American continent between 2015 and 2019; a pandemic in 2020 and 2021; very high fuel costs in 2022; etc.

Copa coped remarkably well with these events: growth slowed, but cash flow was positive every year; debt remained stable; and there was no need for any capital increases.

All this owes much to its ultra-privileged competitive position. Panama is a major hub between the two Americas, and it would not be inaccurate to say that its Tocumen airport was built for Copa; indeed, the company operates four-fifths of all flights departing, arriving or transiting there.

Panama's labor laws are very flexible, and labor costs attractive. In a sector that everywhere else has to contend with extremely vindictive trade unions, Copa enjoys a major competitive advantage, particularly in relation to its North American peers.

Nowhere are the long-term growth prospects for air transport better than in Latin America. Copa intends to capitalize on this opportunity and replicate the Ryanair model while there's still room to grow.

With valuation multiples at an all-time low, investors prepared to brave the sector's structural difficulties will find here an opportunity to bet on a new, happier cycle than the current one.